SING`ORE (ICIS) – Singapore’s economy grew 2.1% year on year in the fourth quarter and slowed from 4.0% growth in the previous quarter amid a slowdown in manufacturing, official data showed on Monday.
For the full year 2022, Singapore’s economy grew by 3.6%, weakening from 8.9% growth in 2021, data from Singapore’s Ministry of Trade and Industry (MTI) showed.
On a seasonally adjusted quarterly basis, the economy grew marginally by 0.1% from October to December 2022, weakening from growth of 0.8% in the third quarter.
Singapore’s manufacturing sector shrank by 2.6% yoy in the fourth quarter of 2022, reversing 1.1% yoy growth in the previous quarter.
“The decline was due to production declines in the biomedical manufacturing, chemical, electronics and general manufacturing clusters,” the MTI said.
The construction sector grew 10% year-on-year, faster than the 8.1% year-on-year growth in the third quarter, as both public and private sector construction activity increased.
KEEP 2023 OUTLOOK AT 0.5-2.5%
Singapore’s growth forecast for the year is kept at 0.5-2.5% as “uncertainties remain in the global economy,” according to the MTI.
Tighter financial conditions in many advanced economies have raised interest rates, which could potentially impact global growth more than expected, the ministry said.
“Further escalations in the war in Ukraine and geopolitical tensions between major world powers could exacerbate supply disruptions, dampen consumer and business confidence and weigh on global trade,” she added.
At the same time, the outlook for some of the republic’s “outward-facing sectors remains weak given the general slowdown in the global economy,” according to the MTI.
Still, growth in China is expected to pick up along with the faster-than-expected easing of its COVID-19 restrictions, leading to improvements in the growth prospects of the regional economies, according to the MTI.
“The global supply situation continues to stabilize despite slowing global demand conditions. Accordingly, global commodity prices have fallen from 2022 levels, although they remain elevated due to the ongoing war between Russia and Ukraine,” it said.
Focus article by Nurluqman Suratman
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